Upload
barry-clarke
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
2
Profile of Fairlane Asset Management
• Manages traditional & non-traditional bond mandates
• Experienced investment professionals
• Services high net worth and institutional investors, including foundations & trusts
• 80% of our investors have been with us for more than fifteen years
3
Fairlane’s History
• Fairlane Asset Management was founded in 2003
• Merged with Strathy Investments Ltd. in 2005 creating over 33 years of experience
• Registration with the Ontario Securities Commission: Portfolio Manager (PM)
Investment Fund Manager (IFM) Commodity Trading Manager (CTM)
4
Fairlane A Plus Bond Hedged Fund
Fairlane Asset Management Service Providers:
• Caledon Trust - Trustee • Commonwealth - Fund Administration• Gowlings - Legal • National Bank Prime Brokerage• SB Partners - Accountants
5
Fairlane’s Business
• Our focus is providing superior absolute returns
• We concentrate in “Special Situation Investing” using the following investment strategies:• Fixed Income Long / Short Investing (Fairlane Credit
Arbitrage) with leverage
• Fixed Income Long Investing (Fairlane A Plus Bond) traditional
• Fixed Income Long Investing with Hedge (Fairlane A Plus Bond Hedged) non-traditional
• Equity and Fixed Income Investing (Fairlane Balanced)
6
Fairlane’s Product Profile
Fairlane Credit Arbitrage Strategy Canadian Fixed Income Strategies
Fairlane A Plus Bond Hedged Fund Canadian Short Credit Bonds and Gov’t Bonds
Fairlane A Plus Bond StrategyCanadian Fixed Income Strategies
Exp
ecte
d R
etu
rn
Risk
Fairlane Balanced StrategyMid Cap Equity with Fixed Income
7
Fairlane A Plus Bond Hedged Fund
Philosophy and Objective:
• The Fund actively invests in undervalued investment grade corporate bonds with an average credit rating of “A” (as per S&P, Moody’s)
• The bonds in the Fund will have an average duration of less than 5 years• The Fund can use Government bonds as a hedge to mitigate interest rate
risk and also can be used opportunistically when market conditions warrant• The Fund invests in securities that are highly liquid
Suitability :• The Fund is suitable for fixed income investors seeking a lower risk strategy
to invest in an actively managed portfolio of bonds • This Fund should be a part of your overall asset mix.
Fairlane A Plus Bond Hedged Fund
Investment Style:
Long Credit – what we do or look for• Rich/Cheap• Top Down • Liquidity• Credit Rating • Underlying stock performance
Government of Canada’s• Match duration • Add alpha value • Trade around edges when opportunity exists
8
9
Fund Facts : GlobeFund Five Star Rating Inception: July 1, 2011Management Fee: 100 basis points
Performance Fee is 15% of our return over a High Water Mark
Expenses: 30 basis points (capped)Category: Fixed IncomeRisk Profile: Low….X……………………HighMin Investment: $100,000 for Pooled FundsDistribution Frequency: Systematically re-invested, T5 at end of
yearAsset Mix/Credit Mix: “A” credit on averageLiquidity: Monthly redemptions & purchasesTax Efficiency: Fund is very tax efficient as approx 70%
of fund return is Capital gain
Fairlane A Plus Bond Hedged Fund
10
Fairlane Asset Management Current Investment Strategy :• Fund is positioned to take advantage of current spreads between
attractive Corporate Bonds and Government Bonds• Fund is also positioned well to take advantage of expensive
Government Bonds • Active Management provides increased returns by trading hedge • Manager believes that current economic conditions forecast higher
bond yields• Hedge will protect capital in a “bear” bond environment• Fund will invest in a portfolio of Corporate securities and High Yield
producing a high internal positive cash flow which will add to net return• Fund would suit investors that seek above average fixed income return
Fairlane A Plus Bond Hedged Fund
1 Month
3 Month 6 Month 1 Year 5 Year 10 YearSince
Inception
Fund 0.60% -0.24% 5.40% 8.51% 8.51%
Benchmark* 0.12% 0.60% 0.69% 2.52% 2.52%
11
Fairlane A Plus Bond Hedged Fund
Compounded Rate of Return Chart
*Globe Canadian Short Term Fixed Income Peer Index
15
Fairlane A Plus Bond Hedged Fund
• Canadian 10-year bond yield too low• Probability rates going higher at some point • Fund is protected against higher rates
Fairlane A Plus Bond Hedged Fund
Current Economic Scenarios and Outcomes
Economic Expansion• EPS growing , stocks higher, credit tightens • Canada’s decrease in price , down in price as BOC tightens eventually
Economic Contraction • Flock to Canada’s for safety• Credit trades flat or down• Manager would reduce shorts outright or partially
Economic Lull• Pick up positive spread between Corps and Canadas • Pick up trading gains
16
Robert Bradeen30 St. Clair Ave West, Suite 1105
Toronto, Ontario M4V 3A1t (416) 975-1900 f (416) 975-1933
www.fairlane-am.com | [email protected]
ContactContact